Pricing name badges - Engraving Etc. Forum

<body> <h1>Full Version: <a href="https://www.engravingetc.org:443/archive/index.php?webtag=EE&msg=6258.29">Pricing name badges</a></h1><a name="a6258_29"></a><p><b>From: Doc (GREAT_ATLANTIC)</b> [<a href="lmessages.php?webtag=EE&msg=6258.29">#29</a>]<br /> 9 Mar 2007<br /><b>To: Dave Jones (DAVERJ)</b> [<a href="lmessages.php?webtag=EE&msg=6258.27">#27</a>] 9 Mar 2007</p> <div class="quotetext" id="quote"><b>quote: </b></div><div class="quote">But you're missing my point. At $0.01 to cover overhead on 40 seconds of work, for 32 hours in a day (4 people all working at the same time on 4 different jobs) that still only brings in $28.80 a day from all the work those people did to cover your overhead. That's only going to cover $576 of your overhead that month. The rest of your overhead is coming out of what you calculated as profit.</div><br /> Ahh! It just dawned on me where the disconnect is with this thread. The $.01 calculation isn't an overall assignment based on time, or part of a formula to determine pricing....it was simply a product of <i>this particular item</i> based on its total cost in backing into the justification of a retail price. That overhead assignment changes for each product value in this direction. It wasn't meant to represent an absolute in determining pricing for all products, but rather as a component for the overall profitability of this <i>one</i> item at $5.25. We've essentially gone in two separate directions in this discussion.<br /> <br /> In other words, we don't assume that the $.01 covers a specific time in production....it assumes that given fixed costs versus total gross revenue, $.01 <b>of</b> the $5.25 <i>represents</i> overhead. That factors all production at different margins, price points, production requirements, etc. And depending on an operation's total gross sales, that number either increases or decreases.<br /> <br /> In the larger picture, outbound pricing based on overhead is absolutely necessary....and I certainly wouldn't attribute only $.01 to the equation regardless of production time, given our fixed costs. <hr /><a name="a6258_30"></a><p><b>From: Peter</b> [<a href="lmessages.php?webtag=EE&msg=6258.30">#30</a>]<br /> 9 Mar 2007<br /><b>To: ALL</b></p> <p>Hi Doc,</p> <p>Yeah Adeaide is only a smallplace. It certainly isnt Manhattan. We have only 1,250,000 people here.</p> <p>But at the sametime, we have a plethora of engraving companies.</p> <p>We have never subscribed to " cheaper means more, business school of economics"</p> <p> </p> <p>Capitalism , democracy, competition and the magic ingrdient...Marketing are well and truly alive here in Australia..</p> <p>regards<br /> Peter</p> <hr /><a name="a6258_31"></a><p><b>From: Doc (GREAT_ATLANTIC)</b> [<a href="lmessages.php?webtag=EE&msg=6258.31">#31</a>]<br /> 9 Mar 2007<br /><b>To: Peter</b> [<a href="lmessages.php?webtag=EE&msg=6258.30">#30</a>] 10 Mar 2007</p> My hat's off to you Peter, particularly in a competitive environment. I wish we could hold the line as well as you on commodity items. One thing's for sure....we're certainly going to try the premium route on sublimated products, one of the key reasons we've added the technology. <hr /><p align="center">Show messages:  <a href="lmessages.php?webtag=EE&msg=6258.1">1-8</a>  <a href="lmessages.php?webtag=EE&msg=6258.9">9-28</a>  29-31</p> <h4><a href="lthread_list.php?webtag=EE">Back to thread list</a> | <a href="llogout.php?webtag=EE">Login</a></h4> <h6>© 2025 <a href="http://www.beehiveforum.net/" target="_blank">Project Beehive Forum</a></h6> </body>